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HomeMy WebLinkAboutUpdate to the 2007 Affordable Housing Market Analysis for the Iowa City Urbanized Area Update to the 2007 Affordable Housing Market Analysis for the Iowa City Urbanized Area January 2015 Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area ii Prepared by the Metropolitan Planning Organization of Johnson County (MPOJC) and the Housing Trust Fund of Johnson County (HTFJC) Kent Ralston, Director, MPOJC Brad Neumann, Asst. Transportation Planner Darian Nagle-Gamm, Traffic Engineering Planner Kelly Davila, Transportation Planning Intern David Sweeney, Transportation Planning Intern Tracey Achenbach, Executive Director, HTFJC Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area iii Table of Contents List of Tables and Figures iv Introduction 1 Existing Conditions 2 Population and Demographic Data 2 Economic and Employment Data 6 Poverty 6 Free and reduced lunch program 7 Employment 9 Distribution of income 11 Median household income 12 Income by age of householder 13 Basic Housing Trends 17 Household composition 18 Owner-occupied versus rental 18 Housing stock 19 Building permits 20 Housing vacancy 21 Housing Costs and Cost Burden 22 Renter 22 Homeowner 24 Income versus housing cost 26 Cost burden illustrated 28 Conclusion 30 Strategies to Increase Affordable Housing Opportunities 30 Appendix A (Updated January, 2015) 33 Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area iv Figures Figure 1 Population trends, 2000-2012 2 Figure 2 Projected population growth 3 Figure 3 Population distribution by age group, 2012 4 Figure 4 Families in poverty – number and percentage 6 Figure 5 ICCSD and CCASD FRL program – proportion and total participants 7 Figure 6 Employment and mean salary by sector 10 Figure 7 Income distribution by jurisdiction, 2012 11 Figure 8 Median household income, 2000-2012 12 Figure 9 County income distribution by age group, 2007 13 Figure 10 County income distribution by age group, 2012 14 Figure 11 Owner-occupied and rented units 18 Figure 12 Growth in single and multifamily housing units, 2000-2012 19 Figure 13 Total building permits issued, 2007-2013 20 Figure 14 Vacancy rates by jurisdiction 21 Figure 15 Proportion of cost-burdened renters by jurisdiction 22 Figure 16 Median housing value for owner-occupied units 24 Figure 17 Proportion of cost-burdened owners by jurisdiction 25 Figure 18 Percent change in median housing value and median household income by jurisdiction, 2000-2012 26 Figure 19 Median gross housing costs as a percentage of household income 26 Figure 20 Figure 21 Median gross rent versus 30 percent monthly wages by selected industries Percent monthly wage needed to pay median rent for selected industries 28 29 Tables Table 1 Historical population trends 2 Table 2 Population distribution by age group, 2012 4 Table 3 Population distribution by race and ethnicity for the urbanized area 5 Table 4 FRL data by school year, ICCSD and CCASD 8 Table 5 Unemployment in civilian labor force, by region, state, and nation 9 Table 6 Median household incomes by jurisdiction 12 Table 7 Income distribution by age of householder by jurisdiction, 2012 15 Table 8 Non-family households 17 Table 9 Households with children 17 Table 10 Regional growth in housing stock, 2000-2012 19 Table 11 Annual breakdown of building permits issued, 2007-2013 20 Table 12 Cost-burdened renters by region, county, and state 23 Table 13 Severely cost-burdened renters by region, county, and state 23 Table 14 Table 15 Table 16 Cost-burdened homeowners by region, county, and state Severely cost-burdened homeowners by region, county, and state Change in median gross rental costs by jurisdiction, county, and state 25 25 28 Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 1 Introduction This document provides an update to the Affordable Housing Market Analysis completed by Mullin & Lonergan Associates in 2007. This document is not intended to be a replication of that analysis, but rather to compare socio-economic conditions and housing needs of 2007 to today, and to discuss strategies to help meet identified needs. This update to the 2007 analysis was requested by the Metropolitan Planning Organization of Johnson County’s (MPOJC) Urbanized Area Policy Board, which ultimately led MPOJC staff to work with the Housing Trust fund of Johnson County to develop this report. The 2007 document is intended as a point of departure. However, data for the year 2007 is largely unavailable for our community since the American Community Survey (ACS) had only begun to standardize their data collection in 2005. Therefore, data used in the generation of the this document is largely derived from Census estimates, primarily Census 2000 and ACS 2008-2012 3-Year and 5-Year estimates. Additionally, county, state, and national data are used to provide broader context as appropriate. Census data was preferred to local data sources because it maintains consistent methodology and statistical rigor. Appendix A was added to this document in January, 2015 to include information requested by the Urbanized Area Policy Board. Figure 5 and Table 4 were also modified for this update. Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 2 Existing Conditions Population and Demographics From 2000 to 2007, the population of the urbanized area grew from 84,672 to an estimated 91,339, a 7.9 percent increase. The population has grown more rapidly since the 2007 study was released, increasing to an estimated 103,800 by 2012, a 13.6 percent change. Suburban communities continue to grow the fastest, with the population of Tiffin growing by 90 percent and the population of North Liberty growing by 148 percent since 2000. Figure 1 Historical trends reflect the trajectory of suburban population growth. Across Iowa, populations in rural counties generally decline, while metropolitan areas gain in population. The population of Johnson County increased 18 percent between 2000 and 2010, compared to the state’s 4 percent increase in population during the same period. Table 1. Historical population trends YEAR CORAL- VILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBANIZED AREA JOHNSON COUNTY IOWA 1960 2,357 33,443 334 311 841 37,952 53,663 2,757,537 1970 6,130 46,850 1,055 299 1,265 55,599 72,127 2,824,376 1980 7,687 50,508 2,046 413 1,069 61,723 81,717 2,913,808 1990 10,347 59,738 2,926 460 1,042 74,513 96,119 2,776,755 2000 15,123 62,220 5,367 975 987 84,672 111,006 2,926,324 2010 18,907 67,862 13,374 1,947 1,051 103,141 130,882 3,047,646 15,123 62,220 5,367 975 987 84,672 111,006 3,808 6,144 7,963 882 331 19,128 20,621 0% 20% 40% 60% 80% 100% CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBANIZED AREA JOHNSON COUNTY POPULATION TRENDS, 2000 -2012 Population in 2000 Population growth, 2000-2012 Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates) Source: U.S. Census Bureau (1960-2010 Decennial Censuses) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 3 Over the next 25 years, MPOJC projects that population will continue to grow in every jurisdiction except University Heights. By 2040, the population of the urbanized area is estimated to grow by 39 percent to 144,600, up from 103,800 in 2012. The majority of this growth will be concentrated in the suburban municipalities. Figure 2 18,931 68,364 13,330 1,857 1,318 103,800 131,627 31,900 79,500 28,100 4,100 1,000 144,600 182,200 - 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBANIZED AREA JOHNSON COUNTY PROJECTED POPULATION GROWTH 2012 2020 2030 2040 Source: MPOJC Long Range Transportation Plan, 2012 Source: ACS 2012 Population Estimates; MPOJC Long-Range Transportation Plan, Population Projections (based on decennial Census data) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 4 Due to the large student population at the University of Iowa, the urbanized area has proportionally more residents between ages 18 and 24 than other urbanized areas in the state. However, each jurisdiction has a slightly different age composition. Nearly half of the population of Iowa City and more than 44 percent of the urbanized area population are under age 25. Coralville’s population reflects its large number of family households, with proportionally more children than the urbanized area average. The age distributions of North Liberty and Tiffin are similar, as Figure 3 illustrates. Table 2. Population distribution by age group, 2012 Figure 3 15% 8% 18% 17% 15% 11% 12% 8% 7% 8% 11% 3% 7% 8% 13% 34% 9% 6% 30% 26% 22% 19% 17% 29% 23% 23% 19% 17% 15% 9% 18% 15% 5% 11% 12% 11% 10% 9% 11% 8% 10% 11% 11% 8% 7% 10% 8% 9% 10% 8% 8% 9% 7% 9% 7% 9% 0%10%20%30%40%50%60%70%80%90%100% CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBANIZED AREA JOHNSON COUNTY POPULATION DISTRIBUTION BY AGE GROUP, 2012 Less than 10 10 to 17 18-24 25-34 35-44 45-54 55-64 65 and over AGE CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBAN AREA JOHNSON COUNTY < 10 2,825 5,658 2,413 311 192 11,399 15,058 10 to 17 1,591 4,427 1,067 213 42 7,340 10,909 18 to 24 2,466 23,134 1,155 115 391 27,261 28,862 25 to 34 3,613 11,252 3,836 419 296 19,416 22,169 35 to 44 2,861 6,025 2,379 276 68 11,609 15,115 45 to 54 2,083 6,734 1,167 198 104 10,286 15,037 55 to 64 2,032 5,581 884 191 108 8,796 13,132 ≥ 65 1,460 5,553 429 134 117 7,693 11,345 TOTAL 18,931 68,364 13,330 1,857 1,318 103,800 131,627 Source: U.S. Census Bureau, (ACS 2008-2012 5-Year Estimates) Source: U.S. Census Bureau, (ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 5 Overall, the population of the urbanized area has become more racially diverse since the 2000 Census. Since 2007, however, growth has slowed among Black and Asian populations. Meanwhile, the Hispanic population is growing more quickly. Table 3. Population distribution by race and ethnicity for the urbanized area YEAR WHITE BLACK AMER. IND./ AK NATIVE ASIAN NATIVE HAWAIIAN/ PAC. ISL. OTHER TWO OR MORE HISPANIC 2000 92.1% 2.5% 0.2% 2.8% < 0.1% 0.8% 1.5% 2.5% 2007 85.6% 4.9% 0.3% 6.1% < 0.1% 1.8% 1.4% 3.6% 2012 87.5% 4.7% 0.1% 4.5% < 0.1% 0.8% 2.4% 4.8% Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 6 Economic and Employment Data Poverty The U.S. Census Bureau collects data on individuals in poverty by comparing family incomes to thresholds established by the federal government, which are adjusted annually for inflation. The 2012 poverty thresholds are defined as $11,720 for a single person and $23,492 for a family of four. The number of families in poverty increased in all of the communities in the urbanized area, with the exception of Coralville. The poverty rate in Iowa City is high compared to the rest of the urbanized area. This is not surprising given the large number of students who typically have low incomes but may be partially or fully supported by their families. Figure 4 0% 2% 4% 6% 8% 10% 12% CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBANIZED AREA JOHNSON COUNTY FAMILIES IN POVERTY - NUMBER AND PERCENTAGE 2000 2012 Source: U.S. Census Bureau, (2000 Census and ACS 2008-2012 5-Year Estimates) 205 202 763 1,275 48 168 10 26 12 13 1,038 1,684 1,247 1,918 Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 7 Free and Reduced Lunch Program Schoolchildren whose families’ incomes fall below the poverty line are eligible to participate in a free and reduced lunch (FRL) program. The total number of students in the Iowa City Community School District (ICCSD) and Clear Creek Amana School District (CCASD) enrolled in the free and reduced lunch program has more than doubled since 2003. While school district boundaries do not align with the jurisdictional boundaries used for the purposes of this report, free and reduced lunch data gives a general sense of the magnitude and spatial distribution of poverty. Between 2000 and 2012, the number of households with children in Johnson County increased 14 percent (See Table 9), but the number of FRL participants increased 69 percent. Figure 5 0% 5% 10% 15% 20% 25% 30% 35% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ICCSD AND CCASD FRL PROGRAM - PROPORTION AND TOTAL PARTICIPANTS 2,692 4,602 2,914 3,429 3,450 3,728 3,853 3,979 2,257 2,506 2,628 Source: Iowa City Community School District, Clear Creek Amana School District Note: This figure was updated January, 2015 Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 8 Table 4. Free and reduced lunch program data by school and year, ICCSD and CCASD 2000 2007 2013 SCHOOL TOTAL ENROLLED TOTAL FRL FRL RATE TOTAL ENROLLED TOTAL FRL FRL RATE TOTAL ENROLLED TOTAL FRL FRL RATE ELEMENTARY SCHOOLS AMANA ELEM 177 23 13% 144 22 15.3% 149 27 18.1% BORLAUG N/A N/A N/A N/A N/A N/A 323 85 26.3% CC ELEM 427 211 49.4% 473 93 19.7% 437 99 22.7% CVL CENTRAL 458 129 28.2% 448 123 27.5% 421 141 33.5% GARNER N/A N/A N/A N/A N/A N/A 491 103 21.0% HILLS 164 84 51.2% 152 82 54.0% 108 69 63.9% HOOVER 275 29 10.6% 306 36 11.8% 354 91 25.7% HORN 303 24 7.9% 294 39 13.3% 454 130 28.6% KIRKWOOD 366 132 36.1% 441 211 47.9% 328 236 72.0% LEMME 273 58 21.3% 283 49 17.3% 364 93 25.6% LINCOLN 256 3 1.2% 256 4 1.6% 238 14 5.9% LONGFELLOW 276 42 15.2% 284 31 10.9% 330 65 19.7% LUCAS 420 134 31.9% 426 153 35.9% 433 234 54.0% MANN 261 131 50.2% 249 116 46.6% 245 136 55.5% NORTH BEND N/A N/A N/A N/A N/A N/A 401 95 23.7% PENN 331 71 21.5% 391 97 24.8% 504 122 24.2% ROOSEVELT 248 107 43.2% 298 139 46.6% N/A N/A N/A SHIMEK 224 13 5.8% 220 15 6.8% 199 26 13.1% TWAIN 295 192 65.1% 220 147 66.8% 266 209 78.6% VAN ALLEN 284 72 25.4% 487 100 20.5% 467 93 19.9% WEBER 493 73 14.8% 494 50 10.1% 476 167 35.1% WICKHAM 435 22 5.1% 452 24 5.3% 479 34 7.1% WOOD 432 198 45.8% 486 239 49.2% 529 408 77.1% MIDDLE AND JUNIOR HIGH SCHOOLS CCA MIDDLE 286 48 16.8% 347 64 18.4% 388 91 23.5% NORTH CENTRAL N/A N/A N/A 308 44 14.3% 461 92 20.0% NORTHWEST 907 173 19.1% 620 154 24.8% 643 205 31.9% SOUTHEAST 677 179 26.4% 660 189 28.6% 749 328 43.8% HIGH SCHOOLS CITY HIGH 1,542 234 15.2% 1,359 242 17.8% 1,413 503 35.6% CCA HIGH 331 45 13.6% 452 72 15.9% 401 117 21.5% WEST HIGH 1,754 268 15.3% 1,838 316 17.2% 1,939 478 24.7% TATE HIGH 69 26 37.7% 119 63 52.9% 146 111 76.0% TOTAL – BOTH DISTRICTS 11,964 2,721 22.7% 12,507 2,914 23.3% 14,136 4,602 32.6% Source: Iowa City Community School District and Clear Creek Amana School District Note: This table was updated January, 2015 Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 9 Employment The urbanized area has a slightly higher unemployment rate than the state, in part because of the large student population. The unemployment rate in Johnson County has not changed dramatically since 2000, but remains below the national average, which was 6 percent in 2012. Table 5. Unemployment in civilian labor force, by region, state, and nation YEAR URBANIZED AREA JOHNSON COUNTY IOWA UNITED STATES Total % Total % Total % Total % 2000 1,869 4.7 2,625 2.9 64,906 4.2 7.9 million 3.7 2007 2,259 2.9 2,586 2.6 79,716 3.4 9.9 million 4.2 2012 2,938 4.7 3,372 3.1 91,676 3.8 14.5 million 6.0 Figure 6 on the following page illustrates the percentage of workers by industry in relation to the mean income for that industry in the urbanized area. From left to right, the graph shows industries with the greatest to least percentage of employed persons. This information is useful to determine how workers in different sectors of employment are affected by the housing market in our community. Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates) So u r c e : Io w a Wa g e Su r v e y , 20 1 3 Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 10 Fi g u r e 6 So u r c e : Io w a W a g e S u r v e y , 2 0 1 3 Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 11 Distribution of Income Distribution of household income is a good indicator of how income varies with respect to location and may help jurisdictions better understand their affordable housing needs. Figure 7 illustrates income distribution by jurisdiction. The proportion of households with income between $75,000 and $150,000 in each jurisdiction was very similar in 2012, although University Heights had a much higher percentage of households earning $150,000 or more. Compared to the other communities in the area, Iowa City had a much higher percentage of households earning less than $20,000, likely due to the large student population. Figure 7 15.3% 9.8% 8.2% 9.2% 19.7% 14.6% 12.2% 11.2% 29.3% 11.3% 6.8% 9.0% 15.6% 10.2% 10.3% 7.7% 10.9% 9.5% 10.1% 10.8% 18.6% 19.4% 16.1% 4.5% 7.8% 8.4% 20.4% 15.9% 18.2% 14.2% 11.2% 3.8% 21.9% 11.0% 7.0% 4.5% 16.5% 11.8% 11.6% 15.9% 20.0% 10.1% 7.9% 8.5% 17.3% 14.0% 12.9% 9.2% 17.1% 11.3% 10.6% 9.9% 19.4% 14.3% 11.6% 5.8% < $20,000 < $30,000 < $40,000 < $50,000 < $75,000 < $100,000 < $150,000 ≥ $150,000 INCOME DISTRIBUTION BY JURISDICTION, 2012 CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS JOHNSON COUNTY IOWA Source: U.S. Census Bureau (ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 12 Median Household Income The 2007 market study reported a slight increase in real median household income throughout the urbanized area between 2000 and 2007. When adjusted for inflation, median household incomes dropped by nearly 7 percent between 2000 and 2012. By jurisdiction, median household incomes dropped 12.4 percent in Iowa City, 16.2 percent in Tiffin, and 12.5 percent in University Heights from 2000 to 2012. During the same period, median household incomes increased by 7.9 percent in Coralville and 0.6 percent in North Liberty. Table 6. Median household incomes by jurisdiction YEAR CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBAN AREA JOHNSON COUNTY 2000 $52,479 $48,202 $58,570 $58,406 $67,430 $57,017 $55,207 2012 $56,635 $42,220 $58,904 $48,929 $59,018 $53,141 $53,993 Figure 8 $57,017 $55,207 $54,392 $50,347 $54,585 $51,379 $53,141 $53,993 $51,129 $38,000 $43,000 $48,000 $53,000 $58,000 URBANIZED AREA JOHNSON COUNTY IOWA MEDIAN HOUSEHOLD INCOME, 2007-2012 2000 2007 2012 Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-012 5-Year Estimates) Source: U.S. Census Bureau (2000 Census and ACS 2008-012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 13 4,693 1,161 702 384 678 121 3,175 1,893 2,053 2,273 4,833 3,026 2,289 1,199 1,341 1,108 1,042 1,702 2,977 2,190 2,949 2,135 1,459 931 759 747 980 481 411 333 0%10%20%30%40%50%60%70%80%90%100% < $20,000 < $30,000 < $40,000 < $50,000 < $75,000 < $100,000 < $150,000 ≥ $150,000 COUNTY INCOME DISTRIBUTION BY AGE GROUP, 2007 Under 25 25-44 45-64 65+ Income by Age of Householder Showing income distribution by age of householder can help identify which segments of the population may be most impacted by housing costs. Figures 9 and 10 show income distribution by age for 2007 and 2012. A common misconception in Johnson County is that the majority of the lowest income households are comprised of students. However, in 2007, the majority of households in the county earning less than $20,000 (approximately 6,000 out of 10,938) had a householder over the age of 25. This proportion increased in 2012. Figure 9 Source: U.S. Census Bureau (ACS 2005-2007 3-Year Estimates) 57 Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 14 Figure 10 4,388 1,341 767 611 697 312 81 23 3,187 1,866 1,715 1,976 4,065 3,504 2,679 1,396 1,570 850 1,045 1,305 2,922 2,667 3,409 2,925 1,445 1,255 632 619 1,473 936 659 506 0%10%20%30%40%50%60%70%80%90%100% < $20,000 < $30,000 < $40,000 < $50,000 < $75,000 < $100,000 < $150,000 ≥ $150,000 COUNTY INCOME DISTRIBUTION BY AGE GROUP, 2012 Under 25 25-44 45-64 65+ Source: U.S. Census Bureau (ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 15 When income distribution by age is examined for each community, Iowa City has the highest proportion of households with income below $20,000. This is true even when the households with a householder under age 25 are discounted. In Iowa City, 4,289 of 20,985 households (20.5 percent) with a householder age 25 or older have a household income less than $20,000. For the remaining municipalities, that proportion is under 10 percent. In total, there are 5,618 urbanized area households with a householder over the age of 25 and income less than $20,000. Table 7. Household income distribution by age of householder by jurisdiction, 2012 CORALVILLE Income Under 25 25-44 45-64 65+ Total % Total % Total % Total % < $20,000 463 49.7 350 10.0 247 10.0 123 14.7 < $30,000 87 9.3 461 13.2 78 3.2 133 15.9 < $40,000 120 12.9 229 6.5 190 7.7 91 10.9 < $50,000 99 10.6 398 11.4 148 6.0 61 7.3 < $75,000 110 11.8 692 19.8 598 24.2 118 14.1 < $100,000 21 2.3 580 16.6 376 15.2 155 18.5 < $150,000 31 3.3 446 12.7 380 15.4 89 10.6 ≥ $150,000 0 0.0 343 9.8 455 18.4 68 8.1 Total 931 100 3499 100 2472 100 838 100 IOWA CITY Income Under 25 25-44 45-64 65+ Total % Total % Total % Total % < $20,000 3692 58.6 2436 25.3 1003 13.3 850 22.1 < $30,000 1117 17.7 952 9.9 411 5.5 608 15.8 < $40,000 387 6.1 775 8.1 438 5.8 241 6.3 < $50,000 405 6.4 944 9.8 718 9.5 386 10.0 < $75,000 485 7.7 1850 19.2 1150 15.3 759 19.7 < $100,000 161 2.6 1124 11.7 1132 15.0 365 9.5 < $150,000 34 0.5 1011 10.5 1440 19.1 334 8.7 ≥ $150,000 23 0.4 520 5.4 1235 16.4 303 7.9 Total 6304 100 9612 100 7527 100 3846 100 NORTH LIBERTY Income Under 25 25-44 45-64 65+ Total % Total % Total % Total % < $20,000 125 25.7 212 5.8 146 11.3 152 39.6 < $30,000 33 6.8 319 8.7 90 7.0 112 29.2 < $40,000 141 29.0 284 7.7 149 11.5 17 4.4 < $50,000 68 14.0 390 10.6 142 11.0 32 8.3 < $75,000 42 8.6 685 18.6 306 23.7 57 14.8 < $100,000 77 15.8 898 24.4 146 11.3 14 3.6 < $150,000 0 0.0 709 19.3 234 18.1 0 0.0 ≥ $150,000 0 0.0 181 4.9 78 6.0 0 0.0 Total 486 100 3678 100 1291 100 384 100 Source: U.S. Census Bureau (ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 16 Table 7. (Continued) Income distribution by age group by jurisdiction TIFFIN Income Under 25 25-44 45-64 65+ Total % Total % Total % Total % < $20,000 14 25.0 31 7.6 9 3.4 10 11.0 < $30,000 0 0.0 21 5.1 23 8.7 25 27.5 < $40,000 12 21.4 72 17.6 55 20.9 28 30.8 < $50,000 0 0.0 88 21.6 31 11.8 11 12.1 < $75,000 12 21.4 70 17.2 57 21.7 10 11.0 < $100,000 18 32.1 84 20.6 11 4.2 3 3.3 < $150,000 0 0.0 30 7.4 58 22.1 4 4.4 ≥ $150,000 0 0.0 12 2.9 19 7.2 0 0.0 Total 56 100 408 100 263 100 91 100 UNIVERSITY HEIGHTS Income Under 25 25-44 45-64 65+ Total % Total % Total % Total % < $20,000 64 47.4 41 20.9 2 1.8 6 8.2 < $30,000 31 23.0 8 4.1 2 1.8 16 21.9 < $40,000 22 16.3 2 1.0 0 0.0 12 16.4 < $50,000 4 3.0 13 6.6 3 2.7 3 4.1 < $75,000 10 7.4 41 20.9 25 22.1 9 12.3 < $100,000 0 0.0 47 24.0 10 8.8 4 5.5 < $150,000 4 3.0 26 13.3 18 15.9 12 16.4 ≥ $150,000 0 0.0 18 9.2 53 46.9 11 15.1 Total 135 100 196 100 113 100 73 100 Source: U.S. Census Bureau (ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 17 Basic Housing Trends Household Composition Non-family households are very common in the urbanized area, as many students share housing to reduce costs. In Coralville, Iowa City, and University Heights, there were proportionally fewer non- family households in 2012 than in 2000, while in North Liberty and Tiffin there were proportionally more. There was little measurable change in the overall proportion of non-family households in Johnson County as a whole. Between 2000 and 2012, the proportion of households with children decreased in all communities within the metro area with the exception of Tiffin. Table 8. Non-family households YEAR CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBANIZED AREA JOHNSON COUNTY Total % Total % Total % Total % Total % Total % Total % 2000 3,148 48.7 14,002 55.6 858 38.0 171 38.9 213 45.6 18,392 52.8 20,502 46.5 2012 3,345 39.9 15,156 52.5 2,631 44.0 347 39.8 245 45.0 21,724 48.6 24,415 46.2 Households with children have different social and economic characteristics and housing needs. Factors such as location, size of housing unit, and proximity of other households with children may influence a family’s decision to purchase or rent one home over another. The proportion of housing suitable for family occupancy should correspond to the proportion of families with children. Furthermore, a variety of single and multifamily units provides families with more options to make housing choices based on location. Table 9. Households with children YEAR CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBANIZED AREA JOHNSON COUNTY Total % Total % Total % Total % Total % Total % Total % 2000 1,882 29.1 5,600 22.2 829 36.7 134 30.5 107 22.7 8,551 33.3 12,137 27.5 2012 2,379 28.4 5,537 19.2 1,894 31.6 275 31.5 111 20.4 10,196 28.1 13,837 26.2 Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates) Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 18 Owner-Occupied versus Rental Units Many communities attempt to maintain a 3-to-1 ratio of owned to rental units. The urbanized area as a whole has nearly a 1-to-1 ratio. This is not surprising given the large student population in Iowa City. From 2000 to 2012, the proportion of owner-occupied properties increased in the urbanized area and the county. Coralville and Iowa City have higher proportions of rental properties than the other jurisdictions. Tiffin has expanded its proportion of owner-occupied units, while North Liberty and University Heights have reduced their proportions of owned units. Figure 11 3,174 4,466 11,714 13,265 1,595 4,083 295 609 298 313 17,076 22,736 24,967 31,912 831,419 888,331 3,293 3,274 13,488 14,024 664 1,756 145 209 169 204 17,759 19,467 19,113 20,914 317,857 335,178 0%50%100% 2000 2012 2000 2012 2000 2012 2000 2012 2000 2012 2000 2012 2000 2012 2000 2012 CO R A L V I L L E IO W A C I T Y NO R T H LI B E R T Y TI F F I N UN I V E R S I T Y HE I G H T S UR B A N I Z E D AR E A JO H N S O N CO U N T Y IO W A OWNER-OCCUPIED AND RENTAL UNITS Owned units Rental units Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 19 Housing Stock Between 2000 and 2012, all jurisdictions added to their housing stock. However, the majority of this growth has been in single-family housing. The most growth has occurred in North Liberty and Tiffin. North Liberty nearly doubled its number of single-family housing units and nearly tripled its multifamily units during this period. Tiffin doubled its supply of single-family and multifamily units. By jurisdiction, growth in housing stock has generally corresponded with population growth. Figure 12 Table 10. Regional growth in housing stock, 2000-2012 NUMBER OF SINGLE- FAMILY UNITS SINGLE-FAMILY UNITS ADDED NUMBER OF MULTIFAMILY UNITS MULTIFAMILY UNITS ADDED URBANIZED AREA 17,240 6,981 16,836 3,605 JOHNSON COUNTY 25,451 7,951 17,184 2,226 3,085 3,357 12,327 12,518 1,208 693 267 143 353 125 1,739 195 2,635 1,403 2,254 1,831 312 150 41 26 0% 25% 50% 75% 100% SF MF SF MF SF MF SF MF SF MF CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS GROWTH IN SINGLE AND MULTIFAMILY HOUSING UNITS, 2000 -2012 Number SF units, 2000 SF units constructed, 2000-2012 Number MF units, 2000 MF units constructed, 2000-2012 Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates) Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates). For the purposes of this section, single family (SF) refers to both attached and detached single-unit homes. Multifamily (MF) includes all structures with two or more apartments. Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 20 Building Permits Building permit data show that proportionally more single-family housing permits have been issued than multifamily permits since 2007. This could indicate that an insufficient amount of land is zoned for multifamily development in the urbanized area, or that developers have less of a financial incentive to construct new multifamily dwelling units. Figure 13 Table 11. Annual breakdown of building permits issued, 2007-2013 433 1220 1299 158 0 690 132 1075 177 124 0 129 0 200 400 600 800 1000 1200 1400 CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS UNINCORPORATED COUNTY TOTAL BUILDING PERMITS ISSUED, 2007 -2013 Single-family Multifamily YEAR CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS UNINC. COUNTY SF MF SF MF SF MF SF MF SF MF SF MF 2007 79 0 175 107 254 54 34 0 0 0 79 0 2008 48 0 156 115 290 24 19 16 0 0 88 38 2009 62 0 168 40 255 12 16 20 0 0 98 26 2010 40 0 153 59 136 0 13 16 0 0 82 20 2011 71 122 126 99 157 20 23 54 0 0 54 21 2012 77 10 223 176 136 20 19 18 0 0 101 0 2013 66 0 219 479 71 47 34 0 0 0 107 24 Subtotals 443 132 1220 1075 1299 177 158 124 0 0 609 129 ALL PERMITS 575 2295 1476 282 0 738 Source: State of the Cities Data System, HUD Source: State of the Cities Data System Building Permits Data Systems, HUD Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 21 Housing Vacancy Housing vacancy rates are helpful indicators of occupancy turnover and housing mobility. The housing industry generally regards a 5 percent vacancy rate as optimal. At this rate, there is neither a surplus nor deficit of available units, which helps regulate housing costs and mitigate cost burden. Some housing units are considered occupied although the owner does not always live there. In order to discount these units from the vacancy rate, the following formula is used to compute vacancy rate by tenure (owner-occupied or renter-occupied): # vacancies by tenure (# vacancies by tenure + # occupied units by tenure) Since 2000, owner vacancy rates have decreased in every jurisdiction except University Heights, while rental vacancy has increased in every jurisdiction except North Liberty. It is important to note that the majority of vacancy rates across the urbanized area remain below the industry standard of 5 percent. Figure 14 2. 3 % 2. 4 % 1. 9 % 2. 6 % 0. 7 % 2. 2 % 0. 9 % 2. 2 % 0. 8 % 0. 0 % 3. 4 % 1. 9 % 2. 8 % 2. 2 % 9. 5 % 4. 6 % 0. 6 % 2. 5 % 4. 4 % 3. 9 % 1. 5 % 7. 6 % 0. 0 % 3. 9 % 0% 2% 4% 6% 8% 10% CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS JOHNSON COUNTY VACANCY RATES BY JURISDICTION 2000: Owner vacancy rate 2012: Owner vacancy rate 2000: Rental vacancy rate 2012: Rental vacancy rate Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 22 Housing Costs and Cost Burden The Census collects data on housing costs as a proportion of household income. Housing is considered “affordable” if occupants pay no more than 30 percent of their gross annual income on rent or owner housing costs. Occupants paying more than 30 percent of gross annual income towards housing are considered cost-burdened, while those paying more than 50 percent are considered severely cost- burdened. The U.S. Census Bureau defines gross rent as the combined cost of rent and selected utilities, while gross homeowner costs refers to mortgage and insurance payments, and selected utilities. Renters The 2007 Affordable Housing Market Analysis reported a 4.4 percent increase in rents between 1990 and 2000 in Johnson County, after being adjusted to 2000 dollars. Rents also increased 4.4 percent between 2000 and 2012 after being adjusted to 2012 dollars.1 The proportion of renters in the urbanized area who were considered cost-burdened totaled over 55 percent in 2012. Figure 15 illustrates growth in the number of cost-burdened renters, including a rise in those who are severely cost-burdened. Although the proportion of cost-burdened renters declined in Iowa City, Tiffin, and University Heights, the proportion of severely cost-burdened renters increased in every jurisdiction. Figure 15 1 U.S. Census 20 . 1 % 21 . 8 % 17 . 5 % 20 . 6 % 14 . 1 % 21 . 2 % 16 . 0 % 32 . 5 % 11 . 0 % 12 . 3 % 32 . 9 % 28 . 4 % 24 . 8 % 19 . 1 % 17 . 9 % 12 . 9 % 4. 9 % 19 . 7 % 20 . 9 % 42 . 0 % 13 . 1 % 16 . 3 % 42 . 7 % 35 . 6 % 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBANIZED AREA PROPORTION OF COST-BURDENED RENTERS BY JURISDICTION Cost-burdened renters, 2000 Cost-burdened renters, 2012 Severely cost-burdened renters, 2000 Severely cost-burdened renters, 2012 Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 23 A number of cost-burdened renters may be presumed to be student households, but many are not. The Census does not differentiate age of the 10,761 cost-burdened renters. There are 7,912 households with a householder under age 25. Discounting this entire age group of householders 2,849 cost- burdened renters remain, therefore cost burden is not only limited to college-aged persons. Because not all renters under the age of 25 are students, the actual number of cost-burdened renters who are not students is higher than this estimate. Tables 12 and 13 indicate that the proportion of cost-burdened renters is similar to that of the state while the proportion of severely cost-burdened renters is far higher in the urbanized area than the state as a whole. Table 12. Cost-burdened renters by region, county, and state Table 13. Severely cost-burdened renters by region, county, and state YEAR URBANIZED AREA JOHNSON COUNTY IOWA TOTAL % TOTAL % TOTAL % 2000 5,021 28.3 5,130 27.5 43,292 14.4 2007 N/A 6,616 33.8 65,196 20.3 2012 6,921 35.6 7,057 33.7 71,558 21.4 YEAR URBANIZED AREA JOHNSON COUNTY IOWA TOTAL % TOTAL % TOTAL % 2000 3,747 21.1 3,871 20.7 51,524 17.1 2007 N/A 3,958 20.2 61,412 19.1 2012 3,840 19.7 4,129 19.7 67,436 20.1 Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates) Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 24 Homeowners Figure 16 shows the median housing value for owner-occupied units in the urbanized area increased substantially between 2000 and 2012. In Coralville, the median housing value was $157,100 in 2000, and by 2012 it had increased to $186,500. The median housing value in Iowa City in 2006 was $161,900 and by 2012 it had increased to $181,000. Median housing values in University Heights increased from $216,100 in 2000 to $246,800 in 2012. Tiffin’s housing values increased from $132,000 in 2006 to $146,000 in 2012. On average, median housing values increased 16 percent across the urbanized area between 2000 and 2012. The greatest increases in housing value in 2012 are found in North Liberty (24 percent) and Coralville (19 percent). The highest median home values were reported in University Heights at $246,800. Figure 16 Like renters, homeowners in the urbanized area are increasingly cost-burdened. According to the 2000 Census, 15.6 percent of homeowners were paying more than 30 percent of their income for housing costs. Of these, 4 percent were severely cost-burdened. Each of these proportions increased by 2012. From 2000 to 2012, the proportion of homeowner households in the urbanized area who were considered cost-burdened nearly doubled between 2000 and 2012. Because of population growth, the actual number of cost-burdened homeowners increased 134 percent over this period, increasing from 2,133 to 4,997. $157,100 $161,900 $125,600 $132,400 $216,100 $186,500 $181,000 $155,500 $146,000 $246,800 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS MEDIAN HOUSING VALUE FOR OWNER-OCCUPIED UNITS 2000 2012 Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 25 Figure 17 Table 14. Cost-burdened homeowners by region, county, and state YEAR URBANIZED AREA JOHNSON COUNTY IOWA TOTAL % TOTAL % TOTAL % 2000 2,133 11.6 2,783 15.2 93,730 14.1 2007 N/A 6,962 22.8 178,905 20.2 2012 4,997 22.0 6,489 20.3 169,575 19.1 Table 15. Severely cost-burdened homeowners by region, county, and state YEAR URBANIZED AREA JOHNSON COUNTY IOWA TOTAL % TOTAL % TOTAL % 2000 541 4.0 740 3.9 28,037 4.2 2007 N/A 2,375 7.8 56,972 6.4 2012 1,689 7.4 2,138 6.7 56,941 6.4 11 . 7 % 11 . 7 % 10 . 5 % 16 . 7 % 10 . 6 % 11 . 6 % 13 . 9 % 14 . 4 % 17 . 4 % 9. 0 % 8. 9 % 14 . 5 % 3. 8 % 4. 1 % 1. 7 % 9. 1 % 6. 8 % 4. 0 % 5. 6 % 8. 3 % 6. 7 % 6. 6 % 10 . 5 % 7. 4 % 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBANIZED AREA PROPORTION OF COST-BURDENED OWNERS BY JURISDICTION Cost-burdened owners, 2000 Cost-burdened owners, 2012 Severely cost-burdened owners, 2000 Severely cost-burdened owners, 2012 Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates) Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates) Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates) Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 26 Income versus Housing Cost According to Census estimates, housing values in the urbanized area increased by an average of 15.8 percent from 2000 to 2012 after adjusting for inflation. In comparison, real median household income decreased by nearly 7 percent during the same period. Figure 18 shows median incomes have not kept pace with rising home values. As the percentage of income spent on housing has increased, so has the proportion of cost-burdened households (Figure 19). Figure 18 Figure 19 18.7% 11.8% 23.8% 10.3% 14.2% 7.9% -12.4% 1.0% -16.2% -12.5% -20% -10% 0% 10% 20% 30% CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS PERCENT CHANGE IN MEDIAN HOUSING VALUE AND MEDIAN HOUSEHOLD INCOME BY JURISDICTION, 2000-2012 Change in median housing value, 2000-2012 Change in median household income 2000, 2012 25 . 4 % 34 . 9 % 22 . 7 % 21 . 6 % 29 . 3 % 29 . 5 % 42 . 9 % 24 . 2 % 22 . 5 % 50 . 0 % 18 . 7 % 17 . 9 % 20 . 8 % 21 . 8 % 16 . 0 % 19 . 8 % 19 . 3 % 22 . 4 % 21 . 1 % 20 . 0 % 0% 10% 20% 30% 40% 50% 60% CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS MEDIAN GROSS HOUSING COSTS AS A PERCENTAGE OF HOUSEHOLD INCOME RENT 2000 RENT 2012 OWN 2000 OWN 2012 Source: U.S. Census Bureau (2000 Census, ACS 2008-2012 5-Year Estimates) Source: U.S. Census Bureau (2000 Census, ACS 2008-2012 5-Year Estimates). North Liberty had zero homeowners paying more than 30 percent household income in 2000. 30 percent household income Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 27 The National Low Income Housing Coalition’s (NLIHC) annual publication of Out of Reach provides data on housing and affordability for metropolitan areas, counties, and states. In 2006, it was reported that the ‘housing wage’ in Johnson County was $13.62, which is the wage that was necessary in order to afford the Fair Market Rent (FMR) for a two-bedroom apartment, which was $708 at that time. In 2013, the FMR had increased to $853, which raised the housing wage necessary to afford rent to $16.40, or an annual salary of $34,112. As illustrated on page 10, the average salary for six of the 21 employment sectors in Johnson County are not high enough to afford rent on a two-bedroom unit in the Johnson County. In total, those six sectors made up over half of the employees in the County, which represented workers in food preparation and serving, sales, production, personal care, healthcare support, and farming. In the 2007 Market Analysis, it was noted that median housing values in Johnson County had increased 30 percent between 1990 and 2000; however, real median income had also increased by nearly 13 percent. In the 2007 analysis, it was estimated that households with income below $50,000 (approximately the low-to-moderate income level) would decrease by 494 in the urbanized area by 2012. According to the Census, there were 21,712 households in the urbanized area with income below $50,000 in 2012. In an attempt account for the student population, when the households with a householder under age of 25 are removed, there were still 14,828 households in 2012 with income below $50,000. Most significant is the number of households with a householder over the age of 25 with household income below $20,000. In 2012, that totaled 5,618 households in the urbanized area. Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 28 Cost Burden Illustrated To illustrate the magnitude of cost burden in the urbanized area, Figure 20 compares median gross rent for 2012 versus 30 percent of mean full-time wages for the two industries with the largest workforces. Combined, the Office and Administrative Support and Food Preparation and Serving industries employ more than one in four workers. The food services industry has the lowest mean salary for any sector – $20,043 in 2013. The office and administration industry employs the largest proportion of workers in the urbanized area, nearly 16 percent, at a mean salary of $35,278. Figure 20 also illustrates that employees in each industry would have a difficult time finding affordable rental housing in the area. Figure 20 Table 16. Change in median gross rental cost by jurisdiction, county, and state (adjusted to 2012 dollars) YEAR CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBANIZED AREA JOHNSON COUNTY 2000 $748 $763 $740 $784 $676 $741 $752 2012 $743 $793 $874 $922 $1,191 $793 $789 CHANGE -0.7% 3.9% 18.1% 17.6% 76.2% 7.0% 4.9% $7 4 3 $7 9 3 $8 7 4 $9 2 2 $1 , 1 9 1 $9 0 5 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS URBANIZED AREA MEDIAN GROSS RENT VS. 30 PERCENT MONTHLY WAGES BY SELECTED INDUSTRIES 2012 Median gross rent, per month 30% full time wages per month, one earner, Office and Admin. Support 30% full time wages per month, one earner, Food Prep. and Serving Source: U.S. Census Bureau (ACS 2008-2012 5-Year Estimates and Iowa Wage Survey, 2013.) Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates) $882 $501 Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 29 To cover median Iowa City rental costs in 2012, a single-income, full-time employee in food services making the average salary for that industry would expect to allocate more than half of his or her earnings towards rent. A typical office worker would expect to allocate slightly less than 30 percent of his or her income, falling just below the cost-burden threshold. These trends hold throughout the urbanized area. Figure 21 Homeownership would also likely be unaffordable for many workers in these sectors, especially when considering the added costs of property taxes, utilities, and homeowners’ insurance. A single-income office worker can afford to spend no more than $881 – 30 percent of average monthly wages on home- ownership. The approximate property tax rate in Iowa City is 2.0 percent.2 On a $100,000 home, that cost equates to $91 per month. The average cost of utilities is $230, and the average cost of homeowners’ insurance is $50.3 When these costs are accounted for, only $510 remains for a mortgage payment, limiting the number of affordable housing options for office workers. Given the same parameters, a single-income householder in the food services industry would have only $130 to make a mortgage payment. For a single-income worker in this industry, homeownership is essentially impossible. Only 21 homes in the urbanized area sold for $100,000 or less in 2013, according to the Iowa City Area Association of Realtors. The majority of these were clustered in neighborhoods south of Highway 6 and east of Gilbert Street in Iowa City, which indicates that homebuyers also face geographical constraints when searching for affordable housing. 2 Johnson County Assessor 3 American Housing Survey, 2011 44% 34% 32% 29% 27% 77% 60% 57% 51% 48% 0%30%60%90% UNIVERSITY HEIGHTS TIFFIN NORTH LIBERTY IOWA CITY CORALVILLE PERCENT MONTHLY WAGE NEEDED TO PAY MEDIAN RENT FOR SELECTED INDUSTRIES Food Services Office and Adminstrative Support Source: U.S. Census Bureau (ACS 2008-2012 5-Year Estimates) and Iowa Wage Survey, 2013. Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 30 Conclusion This update to the 2007 Affordable Housing Market Analysis indicates that affordable housing needs are still unmet and are growing in the urbanized area. Below is a summary of findings:  Real median housing values increased between 2000 and 2012 by an average of 15.6 percent while real median household income decreased by nearly 7 percent during that same time.  The number and percentage of families in poverty in the urbanized area increased from 1,038 (6.2 percent) in 2000 to 1,684 (8.2 percent) in 2012.  The percentage of participants in the Iowa City Community School District Free and Reduced lunch program has increased from 22.3 percent of the student population in 2000 to 33.8 percent of the student population in 2013.  In 2006, the hourly wage required to afford a two-bedroom apartment in the urbanized area was $13.62. As of 2013, the wage required is $16.40.  While the proportion of renters considered to be cost-burdened (paying more than 30% of their income for housing) decreased slightly (1.4 percent) in the urbanized area between 2000 and 2012 the proportion of severely cost burdened renters (paying more than 50% of their income on housing) increased by 1,900 households, a 7.3 percent increase.  Nearly one quarter of the homeowner households were cost-burdened in the urbanized area in 2012, in increase of 6 percent from 2000. The number of severely cost-burdened increased by over 1100 households, or 3.4 percent.  Those working in food preparation/serving jobs and office/administrative support jobs comprise over 25 percent of the employees in the urbanized area, and the average salary for each is $20,043 and $35,278 respectively. Workers in these sectors would have difficulty finding affordable rental housing the urbanized area. Homeownership would be very difficult for workers in these sectors.  Twenty percent of Johnson County households earned less than $20,000 in 2012, and over half were households with a householder age 25 and over. Strategies to Increase Affordable Housing Opportunities The strategies to address housing needs that were outlined in the 2007 Affordable Housing Market Analysis are still valid, since the need for more affordable housing is even more evident now than in 2007. The analysis of each strategy was updated to reflect affordable housing conditions today. While there have been some initiatives undertaken to address the increased need for affordable housing, updating the 2007 Market Analysis was the first step in a collaborative effort to address affordable housing regionally. Listed below are the strategies as outlined in the 2007 Affordable Housing Market Analysis. 1) Change Public Perception This is the most imperative conclusion from the 2007 market study and the one that must occur before any real substantive improvement in the provision of affordable housing occurs. Without this initiative, Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 31 public opinion about the definition of affordable housing, what it looks like, the need for it, and who lives in it will not change. Without a public perception change, it is very difficult for public officials to initiate public policy, pursue financing options, and work collaboratively toward addressing the need fpr affordable housing. The change in perception should begin with local government officials. Once local government officials better understand affordable housing, they can assist with efforts to end the misconceptions within the community. A group of interested persons and organizations interested in making Johnson County a more affordable place to live was formed in late 2013, as the Johnson County Affordable Homes Coalition (JCAHC). One of the group’s initiatives is to educate the public, which includes city/county staff and elected officials. The group’s education campaign initiative includes printing posters, flyers, and other information that provide images of low-to-moderate income persons, including showing them in occupations for which their pay qualify them as low-to-moderate income. Another goal of the public education campaign is to provide a consistent definition for affordable housing, what it looks like, and the extent of its need in the community. An important initiative of the JCAHC is also working with cities to implement policy changes in order to increase the availability and financial options for development of more affordable housing. 2) Public Policies A more detailed explanation of public policy strategies is provided in the 2007 Market Analysis; however, it is worthy to note that implementation of most of these policies for the benefit of affordable housing has not occurred since 2007. Some of the policies identified in 2007 include preserving existing affordable housing units, increasing the amount of land zoned for multi-family housing, and inclusionary zoning. While there may be a few recommendations that have been implemented by a few communities, they have not been conducted on a consistent basis or as an urbanized area initiative. The update to the 2007 Market Analysis was intended to facilitate dialogue on the possible implementation of public policy changes as a region, or urbanized area. Officials in the area could begin the dialogue by discussing which of the policies identified in 2007 are feasible, identify those which are not, and determine other policies that may be more feasible to implement and would increase affordable housing opportunities in the urbanized area. Without proactive public policy changes, the market on its own does not create the necessary affordable housing as evidenced by the increased need. 3) Financing Strategies The Housing Enterprise Zone designation, offered as a possible funding source in the 2007 Market Analysis, is no longer available through the Iowa Economic Development Authority; however, the Workforce Housing Tax Credit program (WHTC) was created to replace it effective July 1, 2014. The WHTC gives developers tax credits for specific types of housing. In addition, communities are encouraged to research all state housing programs available through the Iowa Economic Department Authority and the Iowa Finance Authority. The Housing Trust Fund of Johnson County should also be contacted in regard to availability of funding and for assistance with identifying other potential funding sources. The State Housing Trust Fund program is operated by the Iowa Finance Authority (IFA) and the State Legislature has appropriated funding for trust funds since 2004. There are currently 27 housing trust funds across the state, and only one trust fund can be certified to cover a geographic area. Housing Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 32 Trust Fund of Johnson County (HTFJC) is the local housing trust fund that receives state funding and then through an application process, awards it to developers, organizations, and other entities that propose projects that will preserve or create affordable housing. Since the creation of HTFJC, it has awarded over $3 million for projects that have benefited nearly 300 households in Johnson County. The Johnson County Board of Supervisors and the Cities of Coralville, Iowa City and North Liberty have provided annual funding to HTFJC, which is combined with the state funding and then awarded through an application process to affordable housing projects in the county. The 2007 Market Analysis recommended that a more dedicated stream of revenue be identified to capitalize HTFJC, such as increasing the recording fee on deeds and mortgages, which would then be used by HTFJC for affordable housing projects. 4) Create an Environment for Collaboration and Cooperation A more detailed explanation of the collaboration and cooperation strategies is provided in the 2007 Market Analysis; however, the intent of this initiative was to foster a cooperative environment among local governments, for-profit and nonprofit builders, and the University of Iowa. With the exception of the City of Iowa City’s UniverCity program, it is unclear how much of the collaboration and cooperation that does occur is the result of a community’s initiative. The UniverCity program was initiated by the City of Iowa City with the intention of stabilizing neighborhoods by creating a healthy balance of rental properties and owner-occupied properties surrounding downtown and the University campus. It is a cooperative relationship with the University of Iowa, local lenders, City of Iowa City, Iowa City Housing Authority, and Friends of Historic Preservation. Between 2011 and 2014, the project has acquired 56 homes, and sold 38 of them. The purchase price of the homes has ranged from $70,855 to $246,558, with an average sales price of $156,902. While this program has created more homeownership opportunities in Iowa City, it is evident by the growing need for affordable housing in the urbanized area that development of other partnerships and a spirit of collaboration and cooperation continue to be necessary to facilitate affordable housing development. Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 33 Appendix A This appendix provides information requested by the Urbanized Area Policy Board after the completion of the Update to the 2007 Affordable Housing Market Analysis for the Iowa City Urbanized Area. Maps included here show the geographical distribution of cost burden as it relates to the concentration of students enrolled in the Free and Reduced Lunch (FRL) Program. Figure A-1 illustrates the FRL rates for the Iowa City Community School District and Clear Creek Amana School District by elementary school attendance areas for academic year 2012-2013. Figure A-1 Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 34 Figure A-2 shows the proportion of cost-burdened homeowners by Census block group in the Urbanized Area alongside school FRL rates. Figure A-2 Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area 35 Figure A-3 shows the proportion of cost-burdened renters by Census block group in the Urbanized Area alongside school FRL rates. Figure A-3